In Brief
The Supreme Court upheld the High Court's decision to set aside the contractual termination of a 51 MW solar power purchase agreement, but maintained the appellant's right to recover penalty for delay. The respondent had requested and received permission to change the project location due to encroachment and resistance at the original site, causing delay. While the contract permitted termination if Conditions Subsequent were not met within nine months, the Court found the termination arbitrary given the respondent's substantial investments and the project's advanced commissioning stage. The respondent was ordered to pay the penalty of Rs. 11.96 crore while retaining the contract rights.
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